More than 90 per cent of Citigroup employees have complied with the mandate so far, and that number is rising rapidly, according to a source familiar with the matter, adding that the timing of the vaccination mandate would be different for branch staff.
When it announced its policy, Citigroup said it would assess exemptions on religious or medical grounds, or any other accommodation by state or local law, on a case-by-case basis.
The bank said it was complying with the policy of US President Joe Biden's administration that all workers supporting government contracts must be fully vaccinated, as the government was a large and important client.
You are welcome to apply for other positions at Citi in the future as long as you are compliant with Citi's vaccination policy, the bank said in the memo. If you are not vaccinated, we urge you to get vaccinated as soon as possible. Vaccination in the United States has become a divisive issue in many countries around the world, with some people fiercely opposed and many Republicans opposing mandates imposed by governments and businesses.
The US Supreme Court was hearing arguments on Friday over requests by Republican state officials and business groups to block a Biden mandate for firms with more than 100 workers that require employees to be vaccinated or tested weekly.
Columbia Business School professor Adam Galinsky, who advises companies on their return-to- office strategies, said many companies initially welcomed the White House's vaccine mandate because it took the matter out of their hands.
The Biden mandate may not be held up at the conservative Supreme Court, but companies are recognising it, he said. If it doesn't hold then they are going to have the decision put back in their hands and they will have to do something. Many financial firms have pushed back their return-to- office plans and are encouraging staff to get vaccine boosted, but have so far avoided vaccine mandates for legal reasons.
Chase Hattaway, a partner at law firm RumbergerKirk, said the bank has to navigate federal anti-discrimination and other state laws, which is going to be a challenging and complex policy to implement.
According to Hattaway, Citi will have to tailor its policy to state legislation, and in many cases, cities and municipalities will have different regulations that may require further carve-outs.
Jacqueline Voronov, partner at law firm Hall Booth Smith, said that courts have been upholding the right of private employers to mandate vaccines.
A private employer is allowed to make its own policy. If Citi wants to have a mandatory vaccination policy, they can do that, provided the bank offers medical exemptions.
An increasing number of US companies have been using vaccine requirements to protect employees and prevent operations from being disrupted by mass staff absences.
Scott Kirby, the airline's CEO, said last month that the carrier fired 200 of its 67,000 employees for not complying with its mandate.
Many hospitals have fired staff because they don't comply with mandates, which have been imposed on the healthcare industry in more than 20 states.
While some companies like Tyson Foods Inc have gotten more than 96 percent of its employees to take a vaccine, those in construction and retail have resisted vaccine mandates because of staff resistance due to a tight labour market.